Petrobras to vend Paraguay fuel distribution units for $384M

Petrobras recently announced plans to offload stakes in its fuel distribution units in Paraguay to Grupo Copetrol. The transaction, valued at $383.5 million in cash, will help Petrobras forge ahead with its divestment goals.

The company, which is grappling with huge debt of more than $80 billion, intends to reinstate financial health through deleveraging efforts and divestment goals. Per the deal, the Brazilian oil giant will jettison stakes in three units namely Petrobras Paraguay Distribución Limited, Petrobras Paraguay Operaciones y Logistics SRL and Petrobras Paraguay Gas SRL.

The divested assets would include 197 service stations, 113 convenience stores along with storage terminals in three airports. The deal is set to boost the portfolio of Grupo Copetrol, a fuel and LPG distribution firm in Paraguay, which comprises a network of around 350 service stations and storage terminals.

While Petrobras has already received an advance payment of $49.3 million, it will receive the remaining $334.2 million upon culmination of the deal, subject to regulatory approvals per the rules of Paraguay.